Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Meals On House- keeping $933,000 $265,000 $410,000 258,000 156,000 102,000 Home Total Nursing Wheels Revenues Variable expenses Contribution margin Fixed expenses: 480,000 118,000 206,000 453,000 147,000 204, 000 Depreciation Liability insurance Program administrators' salaries General administrative overhead* 20,600 15,900 37,000 51,600 125,100 $ 36,800 $ 24,200 $ 35,700 $ (23,100) 40,500 7,300 38,500 82,000 416,200 122,800 168,300 69,900 43,500 116,200 186,600 8,800 20,300 40,700 53,000 Total fixed expenses Net operating income (loss) Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $36,800 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided